Jazz Air unitholders back conversion plan.

TORONTO – Unitholders in Jazz Air Income Fund, the regional affiliate
of Air Canada, approved a plan Tuesday to convert to a corporate structure and
change its name to Chorus Aviation Inc.

The move, which is still subject to court approval, was approved with 99.9
per cent of the votes cast in favour of the plan, which is expected to be
completed on Dec. 31.

“I sincerely thank our unitholders for their ongoing support, and anticipate
the benefits of our corporate conversion will deliver ongoing value as we
pursue our objectives of growth and diversification,” said Joseph Randell, Jazz
chief executive said in a statement.

Jazz’s management has said it intends to keep its 60-cents-a-share annual
distribution as a dividend under its new corporate structure.

Late Monday, Jazz reported its net income fell nearly 25 per cent during the
third quarter. The airline said it earned $19.1 million, down $6.2 million from
$25.3 million for the same period last year due to decreased flying, foreign
exchange and other pass-through costs under its agreement with Air Canada.
Operating revenue was flat year-over-year at $379 million, while its operating
expenses increased 2.1 per cent on increased wages, salaries and benefits and
other expense.

The Toronto Stock Exchange has conditionally approved the listing of the
Class A variable voting shares, Class B voting shares and convertible
debentures assumed by Chorus, the company said.